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The Bank Nifty index opened Tuesday’s session higher at 43,805 versus yesterday’s close of 43,641. After marking a high of 43,805, the index has now dipped to 43,735.
The index continues to trade in the 43,500-44,000 range and a breach of this will lend us a clue about the direction of the next leg of trend.
Nevertheless, the advances/ declines ratio of the index at 10/2 reflects the index’s bullish bias today. IDFC First Bank is the top gainer, up by 1.8 per cent, whereas IndusInd Bank is the worst performer so far today, losing 0.8 per cent.
PSU banks seem to be doing broadly well as the Nifty PSU Bank index is up by 0.6 per cent and Nifty Private Bank is up by 0.25 per cent.
Bank Nifty futures
The June expiry futures of Bank Nifty opened the day higher at 43,769 versus yesterday’s close of 43,687. The contract is now hovering around 43,730.
Like the underlying index, Bank Nifty futures, too, are moving within the 43,500-44,000 range.
If Bank Nifty futures break out of 44,000, it will most probably hit 44,500 soon. But if the contract slips below 43,500, it will open the room for more downside, possibly towards 43,000 – the immediate support.
Trading strategy
As the 43,500-44,000 range holds true, traders can stay away from initiating fresh trades at this juncture.
Supports: 43,500 and 43,000
Resistance: 44,000 and 44,500
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